China now calls the shots in electric cars, and European carmakers see it every day. The European Parliament has floated a proposal requiring China to build three-quarters of its electric cars inside Europe. But that misses the real problem: power lies with those who design cars, alongside those who assemble them. Bruegel points out that China’s grip extends beyond assembly to batteries and basic parts. In 2025 and 2026, European automakers will depend even more on Chinese technology and money.
Design centers sit basic to any car factory. Whoever owns the design owns the patents and sets the rules for the supply chain. For Europe, the contest turns on who holds the creative and technical keys, not where cars roll off the line. If Europe can’t win back this ground, its brands could end up as subcontractors. They once led this market; now they risk losing it. Euronews data shows that by 2026, Chinese electric vehicles made up over 20% of EU EV sales. Chinese groups are moving fast and claiming more of the market.
European press reports say BYD is set to begin serial production at its first European passenger car plant in Szeged, Hungary, in the fourth quarter of 2026. The plant will produce both BEVs and PHEVs.
Spain’s housing mess tells a similar story. The Maricarmen case has exposed the failure of policy and old thinking. Some proposals even call for landlords to pay tenants. But the basic problem is simple: there aren’t enough homes. Supply is the bottleneck, not ideology.
Spain’s infrastructure is stuck, too. Energy shortages block new buildings and factories. Roads are riddled with potholes, and high-speed trains run late. Airports are packed. Billions in European funds have come and gone, but the chance to fix things slipped away. Sanchismo, the current government’s approach, has left Spain stretched thin. The money is gone; the problems remain.
Euronews reports that stricter “made in Europe” battery rules could add around €2,100 to the price of an electric car. That figure highlights the role of Korean and Chinese battery manufacturers in the European market.
Big Spanish companies are stuck as well. Indra’s former president Marc Murtra and its current president, Ángel Simón, tried to team up with Telefónica on cybersecurity. It went nowhere. Telefónica wanted to move into civilian cybersecurity, while Indra pushed back. Military cybersecurity is off-limits. Defense gets the money; telecoms are left behind. Headlines come out every week, but there’s no real deal. No one wants to give up control or profits.
Politics has frozen business. Companies wait for the next shakeup, and many watch and guess what Pedro Sánchez will do next. Projects stall, and risk-taking dries up. New idea slows. The mood is stuck. No one moves.
Europe’s electric car plans face more hurdles. New EU rules will soon require card payments at all fast-charging stations. The goal is to make charging easier, but the change also shows how Europe struggles to keep pace with rapid technological shifts.
Europe needs to build more electric cars and regain the lead in design and infrastructure, backed by effective policy. If it doesn’t, it will watch from the sidelines. Europe stands at a crossroads: it must choose between managed decline and a push for real new idea and control.
